Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:
-If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the modular homes? (Round off your answer to the nearest whole dollar.)
Definitions:
Return on Total Assets
A measure of profitability that indicates how efficiently a company is using its assets to generate earnings.
Total Assets
The sum of all current and non-current assets that a company owns, visible on the balance sheet.
Book Value Per Share
The equity available to common shareholders divided by the number of outstanding shares, indicating the value of a company's shares based on its financial statements.
Net Income
The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.
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